Australia lagging as 'green bonds' about to explode

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rench investment bank BNP Paribas tips the burgeoning global market for "green bonds" will treble to more than $US100 billion ($134.7 billion) in the year ahead.

But regulatory uncertainty and political hostility are hindering the ability of Australian companies to tap this growing capital pool.

Still BNP Paribas Australia chief executive James Gibson remains upbeat on the local market's future, predicting that a groundswell of consumer demand for green energy and sustainable investment options will outweigh any political interference.

"In the short term the regulatory uncertainty in Australia will make it harder for local companies to attract capital for green bonds, but in the long term what really matters to the value of any infrastructure asset is the strength of underlying demand," Mr Gibson said.

Read the Age story - “Australia lags as global market for green bonds set to treble in 2015”.